What is the current account balance and savings rate


Suppose an economy's national accounts are GDP = 200, C = 140, I = 40, G = 20, NFP = 0 and EX = 30 where GDP is gross domestic product, C is consumption, I is investment, G is government spending, NFP is net factor payments, and EX is exports. Recall Y = GNP = GDP + NFP. Since NFP = -10, then Y = GDP. Using the national income identity find the value of imports (IM). What is the current account balance? What is the savings rate? What would the government, private, and national savings and their rates be if the government introduced taxes T = 20 while the other variables remain unchanged?

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Microeconomics: What is the current account balance and savings rate
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